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Budgeted data for Flandro Company for the current year is as follows: Denominator activity (direct labor-hours) Variable manufacturing overhead Fixed manufacturing overhead 5,000 $ 25,000 S 59,000 The current standard cost for Flandro is shown below: Description Quantity Price Total Direct materials (yards) Direct labor hours $4.40 S $12.00 S $ 16.80 S + 13.20 12.00 16.80 42.00 MOH (140% of direct labor cost) Standard cost per nit Actual production during the year was 6,000 units and they incurred the following costs Description Quantity Price Total Number of actual units produced Materials purchased (yards) Materials used in production (in yards) Direct labor cost incurred (hours) Actual variable manufacturing overhead cost Actual fixed manufacturing overhead 6,000 24,000 S 4.80 115,200 18,500 5,800 13.00 $ 75,400 $ 29,580 $ 60,400 Required: 1 Redo the standard cost card using direct labor hours for the predetermined rate based on the denominator activity level of 5,000 direct labor hours. Description Quantity Price Total Direct materials (yards) Direct labor hours Variable manufacturing overhead Fixed manufacturing overhead Standard cost per unit 2 Prepare the materials and labor variances for the year Calculation of materials costs: Actual quantity of DM purchased at actual unit price Actual quantity of DM purchased at standard unit price Actual quantity of DM used at standard price Standard quantity of DM allowed for output at standard unit price Total Calculation of materials variances: Unfavorable Favorable Price variance Quantity variance Totals materials variance Calculation of labor costs: Actual hours of labor at actual rate Actual hours of labor at standard rate Standard quantity of DL allowed for output at standard unit price Total Calculation of labor variances: Unfavorable Favorable) Rate variance Efficiency variance Total labor variance 65 3 Prepare the variable and fixed overhead variance for the year 67 68 69 70 71 72 73 74 75 76 Calculation of variable overhead costs: Actual variable overhead Actual hours of labor at standard rate Standard quantity of DL allowed for dutput at standard unit price Total Calculation of yariable overhead variances: Unfavorable (Favorable) Rate variance Efficiency variance Total variable overhead variance 78 79 80 81 82 83 84 85 86 87 Calculation of fixed overhead costs: Actual fixed overhead Budgeted fixed overhead Fixed overhead cost applied to work-in-process (FPOHR x SH) Total Calculation of fixed overhead variances: Unfavorable (Favorable) Budget variance Volume variance Total fixed overhead variance